[linecook]

Originally Posted by jammies

Tim's Hardware owner Tim has 5 full-time employees that he pays minimum wage. Last year he made a $250,000 profit, however this year, due to having to pay his employees $15/hr instead of $10/hr, each employee is costing him an extra $10,000, so he will only make $200,000.

However, simple math works out that each employee got a 50% raise, and there are 5 of them, and Tim is making only 20% less, and there's but one of him. QED, it's a huge net win!

Woo! Tim is gonna put Jim right out of business, too! He's got the city of Make-Believia all sewn up!

Tim will easily make up that 20% once Jim (his only competitor) closes his business and moves it to BC. Not good for the consumer as Tim now has a monopoly and can charge whatever he likes.